Robinsons Bank allots P737 M for capex

Gokongwei-owned Robinsons Bank Corp. has earmarked P737 million for its capital expenditures this year as part of its massive expansion program.

The bank said the funds would be used to finance branch expansion and the implementation of information technology-related projects.

It added the capital expenditures budget would be funded out of cash flows from operations.

The bank almost doubled its earnings to P96.5 million in the first quarter from P49.6 million in the same quarter last year on the back of the strong performance of its core businesses.

The country’s 19th largest bank in terms of assets reported a 15.7 percent rise in operating income to P975.02 million from P842.47 million, while expenses grew by 7.9 percent to P820.26 million from P760.33 million.

Robinsons Bank said interest income jumped by 40.7 percent to P1.28 billion from P911.45 million as loans and receivables surged by 40.6 percent to P988.65 million from P703.36 million.

On the other hand, interest expense more than doubled to P452.71 million from P218.62 million with the issuance of P4.18 billion worth of longterm negotiable certificates of deposits (LTNCDs) last year. This resulted in a 19.8 percent increase in net interest income to P829.92 million from P692.83 million.

The bank’s other income slipped by three percent to P4.6 million due to decreases in trading and securities gains that was offset by higher net service fees and commissions as well as foreign exchange gains.

The volatile markets resulted in a 86.31 percent plunge in trading and securities gains to P8.11 million in the first quarter from P59.25 million in the same quarter last year.

On the other hand, the bank’s gains from foreign exchange operations zoomed by 90 percent to P81.27 million from P42.77 million.